Jokowi Rallies Government to Fight Against Global Economic Crisis

Coordinating Minister for Economics Affairs, Airlangga Hartarto, previously also warned that the incoming crisis to be worse than the 1998 economic crisis. Hartarto also cited the fact that 28 countries already asked the IMF for aids. 

"Mr. President conveyed that in IMF there are 28 countries who get in to receive ads. 14 already got in and 14 are still in process. This magnitude is bigger than the 1998 crisis," said Minister Airlangga at the State Palace in Jakarta.

The 1997-1998 crisis was particularly severe in East and Southeast Asia. During that crisis, President Soeharto also fell from power after more than three decades in power. 

Airlangga stated that the Indonesia's rupiah is in good position compared to other ASEAN currencies such as Malaysia's ringgit and Thailand's Baht. He also said that Indonesian economy still has a strong position as it has the highest growth among the G20 countries, right after Saudi Arabia. 

Meanwhile, Finance Minister Sri Mulyani Indrawati has announced that Indonesian GDP will grow above 5 percent in 2023. But she warned about the negative projection in various countries. 

"The downward projection is happening in every country whether developed or developing countries," said Minister Sri Mulyani this Wednesday.

The country's top diplomat also acknowledged how the Russo-Ukrainian war is creating the food crisis. This could potentially impact Indonesia whose more than 270 million people consume rice. 

"Ukraine and Russia are the keys on the global food chain. Breadbasket of the world," said Minister Retno Marsudi in her speech at the Indonesian Air Force Command and Staff College on Tuesday (19/10).

"Because of the war, the food crisis is quickly becoming a threat for the world. The global food price index reached its peak in May 2022," she continued.

Minister Retno particularly highlighted the price of fertilizer. If the price stays high during the next harvesting season, the world will experience a rice crisis.

"This will impact three billion of the world's citizens, including our region," she warned.

Ukraine is an important global exporter of fertilizer. The war has been making it difficult for them to send fertilizer to other countries.

Minister Retno also cited the IMF to warn people of the incoming economic troubles. 

"IMF has warned the worst is yet to come and for many people, 2023 will feel like a recession. The economic slowdown can also happen in Southeast Asia," said Retno.

Lisza Egeham, Benedikta Miranti T.V, and Muhammad Radityo Priyasmoro contributed to this article.